The Union Home Affairs Ministry has notified the auction of land in Uttar Pradesh previously owned by the family of former Pakistan President Pervez Musharraf.
Enemy Properties in India
Details
Definition
Assets (movable and immovable) and properties of individuals or entities from countries at war with India, vested with CEPI.
History
Concept initiated after India-Pakistan wars (1965 & 1971) and the 1962 Sino-Indian war.
Q What were the reasons for the introduction of Fiscal Responsibility and Budget Management (FRBM) Act, 2013? Discuss critically its salient features and their effectiveness. (UPSC IAS/2018)
Q The public expenditure management is a challenge to the Government of India in the context of budget making during the post-liberalization period. Clarify it. (UPSC IAS/2019)
Q How have the recommendations of the 14th Finance Commission of India enabled the States to improve their fiscal position? (UPSC IAS/2021)
Mentor comment: Fiscal deficit is considered a problem in India because it leads to increased government borrowing, which can raise public debt to unsustainable levels. This borrowing often crowds out private investment by driving up interest rates, making it more expensive for businesses to borrow. Additionally, financing the deficit by printing money can lead to inflation, eroding consumers’ purchasing power. It also places a burden on future generations, who will have to pay off the debt. In today’s editorial, we will be having a look on how the high fiscal deficits can undermine investor confidence, potentially resulting in credit downgrades and higher borrowing costs.
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Let’s learn!
Why in the News?
The FM in the Union Budget of 2024-25 stated that, from 2026-27 onwards, Indian govt will focus to reduce the fiscal deficit each year to ensure that the debt declines as a percentage of GDP.
The speech also says that the Centre’s fiscal deficit would be reduced to 4.5% of GDP in 2025-26 from its budgeted level of 4.9% in 2024-25.
About the Fiscal Deficit: • Fiscal Deficit is excess of total budget expenditure over total budget receipts excluding borrowings during a fiscal year. • Fiscal Deficit = Total Expenditure – (Revenue Receipts + Non-Debt Creating Capital Receipts).
What is the National Debt? • The national debt is the total amount of money that the government owes to its lenders at a particular point in time. It is different from the fiscal deficit. • In simple, it is the amount of debt that has accumulated by the government over many years of running fiscal deficits and borrowing to bridge the deficits.
What are the implications of the Fiscal deficit?
Negative Implications:
Inflationary Pressure: When a country’s government runs a persistently high fiscal deficit, this can eventually lead to higher inflation as the government will be forced to use fresh money issued by the central bank to fund its fiscal deficit.
It also eventually leads to a higher ratio of interest payments to revenue receipts. Hence there will be lower shares for financing non-interest expenditures.
Crowding Out effect: When the government borrows a large portion of available funds from financial markets to finance its deficit, it crowds out private investment with reduced access to credit for businesses and individuals.
This can hinder economic growth and productivity.
Reduced Fiscal Space: A high fiscal deficit limits the government’s ability to respond to economic shocks or crises.
With limited fiscal space, the government may be unable to implement countercyclical fiscal policies such as increased spending or tax cuts to stimulate economic growth during downturns.
Difficulty in borrowing: As a government’s finances worsen, demand for the government’s bonds begins to drop, forcing the government to offer to pay a higher interest rate to lenders.
Positive Implications of Lower Fiscal Deficit:
Improve Credit Ratings: Higher credit ratings make it cheaper for India to borrow in global markets, reducing the cost of external debt.
Enhance the space for development: Less money is diverted to debt servicing while the fiscal deficit is lower, which leaves more funds for development projectslike infrastructure, education, and healthcare.
This can enhance investor confidence,leading to increased foreign and domestic investment.
Improve the Balance of Payment: Lower deficits will be reducing the reliance on foreign borrowing. It will help in stabilizing the exchange rateand the overall current account.
What are the reforms needed?
Infrastructure Finance Reforms: Improving mechanisms for financing infrastructure projects by involving the private sector through public-private partnerships (PPP), infrastructure bonds, and development of finance institutions.
Recommendations: The NK Singh committee in 2017proposed a draft Debt Management and Fiscal Responsibility Bill, 2017 which need to be implemented comprehensively.
Incentivizing Financial Savings: Promoting higher household financial savings through tax incentives on financial products, improving returns on long-term savings schemes, and enhancing financial literacy.
A new study published in the peer-reviewed “journal Nature” has found that the construction of toilets under the government’s “Swachh Bharat Mission” helped prevent approximately 60,000 to 70,000 infant deaths annually between 2011 and 2020.
Key Highlights of the Report:
Impact of SBM: The study revealed that districts with over 30% toilet coverage under SBM experienced reductions of 5.3 in the Infant Mortality Rate and 6.8 in the Under Five Mortality Rate per thousand live births.
Over 9.5 crore toilets being built across the country since 2014;
564,658 villages being declared Open Defecation Free (ODF);
30 States/UT’s being 100% covered with individual household latrines (as of 2019).
Unique Approach of SBM: The approach of combining toilet construction with substantial investments in IEC (Information, Education, and Communication) and community engagement represents a marked departure from traditional efforts in India.
Novel Evidence of Impact: The study provides novel evidence of reductions in infant and child mortality following SBM’s comprehensive national sanitation program, indicating its transformative role in improving public health outcomes.
Asian Enigma: The report touches on the “Asian Enigma,” which highlights persistently high levels of undernutrition and stunting among children despite sufficient food availability, linking it to poor sanitation practices and open defecation.
Successful Journey since Inception (2014-present):
Phase I (2014): The SBM 1.0 aimed to make urban centers open-defecation-free and improve sanitation infrastructure, particularly toilets.
The mission targeted constructing household, community, and public toilets, converting insanitary latrines, and improving solid-waste management.
Phase II (2020): The SBM 2.0 commenced in 2020, and is expected to run till 2025-26. It aims to sustain the achievements of phase I and ensure that treatment of both liquid and solid waste is achieved through the help of technology and private sector engagement.
This will focus on making Indian cities garbage-free by improving scientific waste management systems.
Way forward:
Global Model for Sanitation: India’s national sanitation campaign under SBM could serve as a model for other low- and middle-income countries where sanitation remains a major public health challenge.
Focus on Behavioral Change: Alongside infrastructure development, efforts are needed to sustain behavioural changes to eliminate open defecation.
Expand Sanitation Infrastructure in Rural Areas: Prioritize extending sanitation coverage and scientific waste management systems to underserved rural regions, building on the success of SBM to reduce mortality further and improve public health.
The Public Accounts Committee (PAC) has included a review of SEBI’s performance, amid political controversy surrounding chairperson Madhabi Puri Buch following Hindenburg Research’s allegations.
What are the allegations against SEBI?
Conflict of Interest: SEBI chairperson Madhabi Puri Buch faces conflict of interest allegations due to her past ICICI Bank role amid Adani investigations.
Toxic Work Environment: Reports have surfaced from approximately 500 SEBI employees claiming that the work culture at the regulatory body is “toxic and fearful.” This has led to demands for an impartial inquiry into the alleged workplace issues and the overall management of SEBI.
Response to Allegations: Buch and SEBI have denied wrongdoing, asserting that all necessary disclosures and recusal norms have been followed diligently.
Significance and Functions of the Public Accounts Committee (PAC)
The PAC was introduced in 1921 after its first mention in the Government of India Act, 1919 (Montford Reforms).
Oversight Role: The PAC serves as a parliamentary watchdog for government spending, ensuring accountability and transparency in the use of public funds. It plays a crucial role in auditing the revenue and expenditure of the government.
Review of Regulatory Bodies: The PAC has the authority to review the performance of regulatory bodies established by the Act of Parliament.
Suo-motu subjects: The PAC can select subjects for in-depth examination beyond the standard audit reports, allowing it to address pressing issues that may arise in the public interest, such as the allegations against SEBI’s chairperson.
Advisory Role: While the PAC can make recommendations based on its findings, it does not have the authority to enforce compliance. Its recommendations are advisory in nature.
How SEBI can improve its regulation considering recent challenges? (Way forward)
Enhanced Disclosure Regulations: SEBI has already made progress with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2023, but further refinement is needed.
It should focus on clarifying the scope of disclosures required from companies, particularly regarding financial irregularities and conflicts of interest.
Bolstering Whistleblower Protections: SEBI should strengthen its whistleblower protection framework to encourage the reporting of internal issues or malpractices, ensuring accountability and protection for informants.
Improving Internal Governance and Work Culture: SEBI can address concerns about a toxic work environment by conducting independent reviews of its internal governance, improving employee welfare, and fostering a transparent, positive work culture.
Collaborating with Global Regulatory Bodies: SEBI can work more closely with global financial regulators to align with international best practices and enhance cross-border market oversight, ensuring that India’s markets remain resilient and transparent.
Kashmir’s fragile environment faces severe damage from urbanization, commercialization, and climate change, underscoring the urgent need for a resilient and sustainable tourism model.
Aims and Objectives of J&K Tourism Policy
Promoting all forms of Tourism: The policy aims to promote traditional recreational tourism as well as adventure, pilgrimage, spiritual, and health tourism. This diversification can attract a wider range of tourists.
Sustainable Practices: The policy emphasizes the need for sustainable tourism practices that minimize environmental degradation, conserve water, and protect biodiversity.
Infrastructure Development: It seeks to improve infrastructure, including hotels, roads, and recreational facilities, to accommodate the growing number of tourists.
Community Engagement: The policy aims to include local communities in tourism planning and decision-making processes, promoting their involvement in conservation efforts and sustainable practices.
Diversification of Tourism: By promoting various forms of tourism, such as eco-tourism, adventure tourism, and cultural tourism, the policy aims to reduce over-reliance on traditional tourist spots and distribute tourist footfall more evenly across the region.
What are the effects of the new Policy?
Positive Impacts
Negative Impacts:
Increased Tourist Influx: Since the announcement of the New Tourism policy in 2020, over 40 million tourists have visited Kashmir.
Increase in Employment: The policy helps to generate employment of approximately 50,000 people per year, which can significantly boost the local economy.
Promotes Culture and Festivals: The policy promotes city-wise events and festivals with a pre-defined calendar to attract tourists.
Boosting Exports and Collaborations: The policy helps the handicraft industry, which was earlier limited to select destinations, to directly export and collaborate both nationally and internationally.
Environmental Stress: The rapid increase in tourist activities has led to significant ecological disturbances, including deforestation, waste accumulation, and pollution of water bodies.
Increase in Infra-strain: It also resulted in encroachment on natural habitats and increased pressure on local resources, such as water and electricity.
Climate Change Impact: The region is experiencing accelerated effects of climate change, including glacial depletion and erratic weather patterns, which threaten agricultural sustainability and water availability.
Major Challenge: Fragility of the Region
Natural Disasters: Jammu and Kashmir is prone to natural disasters such as earthquakes, floods, and landslides, which can be exacerbated by unchecked commercialization and environmental degradation.
Ecological Sensitivity: The region’s delicate ecosystems are highly vulnerable to the impacts of tourism and urbanization, necessitating careful management to prevent irreversible damage.
Resource Depletion: The increased demand for water and energy resources is leading to the depletion of aquifers and heightened reliance on hydroelectric projects, which disrupt local aquatic ecosystems.
Need for a Resilient Tourism Model (Way Forward)
Sustainable Tourism Practices: There is an urgent need to adopt a resilient and sustainable tourism model that prioritizes eco-friendly practices, waste reduction, and conservation of natural resources.
Community Involvement: Engaging local communities in tourism planning and decision-making is crucial for fostering sustainable practices and ensuring that the benefits of tourism are shared equitably.
Infrastructure Resilience: Developing infrastructure that can withstand extreme weather events and diversifying tourism offerings beyond peak seasons will help mitigate the impacts of climate change.
Policy Integration: A cohesive approach that integrates sustainable tourism policies with broader economic and environmental strategies is essential for preserving the region’s natural beauty while supporting local economies.
The National Tiger Conservation Authority (NTCA), the apex body responsible for tiger conservation, recently issued directives urging 19 States to prioritize the relocation of villagers residing in core tiger zones.
NTCA’s Directive:
According to the NTCA, 591 villages, comprising 64,801 families, reside in the core tiger zone, posing a significant concern for tiger conservation.
The core zone refers to the part of a tiger reserve where human activities such as hunting and forest produce collection are PROHIBITED, and tribals CANNOT reside.
Outside the core zone is the buffer zone, where certain activities are allowed but regulated.
About National Tiger Conservation Authority (NTCA):
Details
Constitution
Statutory body under MoEFCC, constituted under Wildlife (Protection) Act, 1972.
Chairmanship
Chaired by the Minister for Environment and Forests.
Structure
• 8 experts in wildlife conservation and tribal welfare.
• 3 MPs.
• Inspector General of Forests as ex-officio Member Secretary.
Objectives
• Provide statutory authority to Project Tiger.
• Enhance Centre-State accountability in managing Tiger Reserves.
• Provide parliamentary oversight.
• Address livelihood concerns of local communities.
Powers and Functions
• Approve state-prepared tiger conservation plans.
• Prevent unsustainable land use in Tiger Reserves.
• Set standards for tourism and tiger conservation guidelines.
• Conduct tiger censuses (via M-STrIPES app).
• Support biodiversity conservation through eco-development and people’s participation.
Key Initiative
• Project Tiger, a Centrally Sponsored Scheme for in-situ conservation of tigers, launched on April 1, 1973.
PYQ:
[2014] Consider the following statements:
1. Animal Welfare Board of India is established under the Environment (Protection) Act, 1986.
2. National Tiger Conservation Authority is a statutory body.
3. National Ganga River Basin Authority is chaired by the Prime Minister.
Which of the statements given above is/ are correct?
Recent research reveals that FD&C Yellow 5, a common food dye, can temporarily make tissue transparent, with potential implications for cancer treatment and medical procedures.
AboutYellow Food Dye
FD&C Yellow 5, also known as Tartrazine, is a widely used synthetic food dye found in various snacks, drinks, and processed foods.
Approved by the FDA, it is commonly used to give products a vibrant yellow color.
How does it work?
The dye has the ability to make tissue transparent is based on its interaction with light, specifically through the Kramers-Kronig relations, a principle in physics.
It absorbs blue light, leaving only the red-orange spectrum visible.
This alters the refractive index of water, causing it to match the refractive index of fats and proteins in tissue.
When the refractive indices match, light can pass through tissue with less scattering, creating the appearance of transparency.
Potential Medical Applications of Yellow Food Dye
Cancer Treatment: By making tissues transparent, FD&C Yellow 5 could enhance photodynamic and photothermal therapies, allowing laser light to reach deeper tissues and target cancerous cells more effectively.
Vein Visibility: Transparent tissues could help make veins more visible, aiding in procedures like venepuncture for blood draws or injections, particularly in patients with hard-to-see veins.
Non-invasive Diagnostics: The dye could allow doctors to visualize internal organs and structures without the need for invasive procedures like biopsies or expensive imaging technologies like CT scans or MRIs.
PYQ:
[2018] Consider the following statements:
1. The Food Safety and Standards Act, 2006 replaced the Prevention of Food Adulteration Act, 1954.
2. The Food Safety and Standards Authority of India (FSSAI) is under the charge of Director General of Health Services in the Union Ministry of Health and Family Welfare.
Which of the statements given above is/are correct?
The Union government has notified the constitution of the 23rd Law Commission of India with effect from September 1.
Terms of Reference of the 23rd Law Commission:
The 23rd Law Commission has been tasked with addressing similar objectives as previous Commissions, such as:
Identifying outdated laws that can be repealed.
Creating Standard Operating Procedures (SoP) for the periodic review of laws.
Identifying laws that are not in harmony with economic needs and suggesting amendments.
Like its predecessors, it will examine laws in light of the DPSP and suggest improvements or new legislation to fulfill the objectives outlined in the Preamble of the Constitution.
PM’s call for a uniform civil code reflects the need to implement, a Directive Principle outlined in the Constitution.
About the Law Commission of India:
Details
Nature
Non-statutory body periodically constituted by the Government of India. It is an Executive Body.
Establishment
First Commission during British India: Established in 1834 under the Charter Act of 1833, chaired by Lord Macaulay, Focused on the codification of laws like the Penal Code and Criminal Procedure Code.
First Commission in Independent India: Established in 1955, chaired by M. C. Setalvad, then Attorney-General of India.
Primary Role
Advises the Ministry of Law and Justice on legal reform and reviews existing laws to suggest improvements and draft new legislation.
Recommendations are advisory and NOT binding on the government.
Composition
Headed by a Chairperson (usually a retired Supreme Court Judge or Chief Justice of a High Court),
4 full-time members (including a Member-Secretary), ex-officio members (Secretaries of the Departments of Legal Affairs and Legislative Department), and
Up to 5 part-time members.
Tenure
3 years, with provisions for reconstitution or extension as required by the government.
Key Functions
• Undertakes legal research.
• Review existing laws for reforms.
• Recommends repeal of obsolete laws.
• Suggest amendments and new legislations.
• Examines laws that affect the poor and marginalized.
Notable Recommendations by 22nd law Commission
• Uniform Civil Code.
• Amendments to the sedition law.
• Repeal of obsolete laws.
• Gender equality in personal laws.
• Improvements in judicial administration.
Reports Submitted
Over 277 reports on various legal issues including the implementation of international conventions, compulsory registration of marriages, etc.
Recent Activity
The 22nd Law Commission is focusing on issues like the Uniform Civil Code and amendments to the sedition law (Section 124A), among other legislative reforms.
PYQ:
[2014] The power to increase the number of judges in the Supreme Court of India is vested in:
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